Ukraine faces a man-made disaster because of the explosion of the Kakhovska hydroelectric power plant by Russian troops

Apple Inc (AAPL) introduced an augmented reality headset called Vision Pro. But the stock has reacted negatively, as analysts are not convinced that the $3499 price tag will drive strong sales, especially at a time of declining economic activity. Advanced Micro Devices (AMD) shares rose more than 4% after Piper Sandler raised its target share price to $150

Yesterday Russian troops blew up the Kakhovka hydroelectric power plant in southern Ukraine. Ukrainian President Vladimir Zelensky called a meeting of the National Security and Defense Council. At the moment, there is an evacuation of the population in the territories controlled by Ukraine. About 80 settlements are in the flooded area, and the nearest villages have already gone underwater. On the environmental and economic consequences, the destruction of the Kakhovka hydroelectric power station can be equated to the consequences of the use of tactical nuclear weapons of 5-10 kilotons. The explosion of the Kakhovskaya HPP may have negative consequences for the nuclear power plant in Enerhodar if the water level in the reservoir falls below the critical level. It would also have a negative impact on the eco flora of the Black Sea, on the region’s crop fields, and on the availability of drinking water in some cities in the region.

A 1 million-barrel-a-day cut in Saudi Arabia’s oil production, which would reduce output by 20% in July, would not by itself drive the price of a barrel to $80 to $90, Citigroup analysts said.

Asian markets traded yesterday without a single dynamic. Japan’s Nikkei 225 (JP225) gained 0.90% over the day, China’s FTSE China A50 (CHA50) was down by 0.26%, Hong Kong’s Hang Seng (HK50) ended the day down by 0.05%, India’s NIFTY 50 (IND50) gained 0.03%, and Australia’s S&P/ASX 200 (AU200) ended Tuesday negative by 1.20%.

Wednesday’s decline continued as weaker-than-expected economic reports from China and Australia worsened investor sentiment in the region. China’s trade surplus reached a yearly low in May on the back of shrinking exports. A slowdown in economic growth in Europe and the US is expected to lead to a decline in Chinese exports this year as both regions, which are major consumers of Chinese goods, struggle with high inflation and interest rates. Data from the Australian Bureau of Statistics showed Wednesday that real gross domestic product (GDP) rose by 0.2% in the first quarter, up from 0.5%. Annual growth was 2.3%, which also missed forecasts for growth of 2.4%.

Goldman Sachs economists note that further interest rate hikes by the US Federal Reserve will further weaken the Japanese yen. The Bank of Japan maintains its extremely dovish stance on negative interest rates. The rate differential between the US and Japanese central banks will persist. The Bank of Japan’s next monetary policy meeting is scheduled for June 15 and 16.